Perkstreet Financial is Shutting Down…What This Means for Rewards

by Sean Bryant on August 19, 2013

Perkstreet FinancialIf you have spent any time online the past day or two, you might have heard the news that Perkstreet Financial will officially close its doors on September 26. The reason behind this shocking move was due to a lack of funding from outside investors, and they could not maintain their business model.

Who is Perkstreet Financial?

If you never held an account with them, you might not know who Perkstreet Financial actually is. Perkstreet was an online bank that did things a little different than others. They offered 2 percent cash back rewards for using a debit card and their fees were lower than other banks. Sounds pretty attractive, doesn’t it?

For those people who are strongly against the use of credit cards, this was an amazing alternative, because it allowed you to earn a reward for each dollar you spent. It also had features of a checking account (you were unable to spend more than you had in the account.)

What if you are a Perkstreet Account Holder?

If you have an account with Perkstreet it will depend on your account number as to who will hold your money moving forward. Some account holders were with Perkstreet Financial, and some were with Provident Bank. If your debt card started with 5519 or your account number started with 123, then you were with Perkstreet and after September 26 the account will be with The Bancorp Bank.

If your debit card started with 5507 or your account number started with 234, then your money was with Provident Bank and you will need to move your money before September 26, 2013. Overdraft protection has already been eliminated and by September 11, all other extras (bill pay, check deposits, etc.) will be gone.

What happened to my Perkstreet Rewards?

If you have an account with Perkstreet, then unfortunately you will not be receiving any of the rewards that you had not previously cashed out before August 12. This is really a sad occurrence, because over the past five years banks have been disgraced and Perkstreet tried to change the streets opinion. They were dedicated to offering banking products with low fees and still reward people for their business.

If you check out the Perkstreet Twitter page, you will see this has caused quite the commotion with its account holders. I didn’t personally have an account, but I feel terrible for the people who earned rewards and won’t be able to receive them.

Does this change the way you will manage your credit card rewards?

Had this issue been presented to us five years ago, I would probably tell you that I was a little skeptical about what could happen to all of the rewards I have earned from travel credit cards. Back then, it seemed like every bank was at risk of failure and your miles/points could be gone at any time.

Fast forward to the present and I don’t see big banks ever being in a worrisome position again, so I feel that your credit card rewards are safe.

What Now?

Now that it’s time to look for a new place to store your money, you need to do some research to find out what’s best for you. I am a big fan of Capital One 360, because it has a lot of similar features as Perkstreet without the rewards.

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Sean Bryant

Sean Bryant created in 2011 to help pass along his knowledge of finance and economics to others. After graduating from the University of Iowa with a degree in economics he worked as a construction superintendent before jumping into the world of finance. Sean has worked on the trade desk for a commodities brokerage firm, he was a project manager for an investment research company and was a CDO analyst at a big bank. That being said he brings a good understanding of the finance field to the One Smart Dollar community. When not working Sean and he wife are avid world travelers. He enjoys spending time with his daughter Colette and dog Charlie.
  • Holly Johnson

    I think that’s so messed up that it’s just “shutting down.” I wonder what was wrong internally that made things fall apart the way they did.

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